SEPTEMBER 9, 1997

We, the Program Managers, hereby set forth and agree to the following.

I. PURPOSE

In the interest of economy and efficiency, federal agencies are placing increased emphasis on the use of multiagency contracts and governmentwide acquisitions (commonly known and hereinafter referred to as governmentwide agency contracts or GWACs). When properly developed and used, these vehicles may enable agencies to further leverage the government’s buying power and to satisfy their requirements using contractual vehicles issued by other agencies.

In order to affirm a commitment to sound competition and other contracting philosophies, and to improve the processes associated with these vehicles, we, the undersigned program managers, have identified a series of principles that will guide our business conduct. The principles are recorded in this document, which shall be known as the "Multiagency/GWAC Program Managers Compact," hereinafter referred to as the "Compact." We commit to follow the principles contained herein.

II. APPLICATION

The principles set forth in this Compact apply to multiagency contracts and governmentwide agency contracts.

For purposes of this Compact --

Multiagency contracts are multiple award task order contracts that provide for agencies (requesting agencies) needing services, including but not limited to information technology services, to obtain them from another federal agency (servicing agency) that also has a need for such services and has awarded, or will be awarding, a contract for such services. Multiagency contracts are subject to the requirements and limitations of the Economy Act (except where more specific statutory authority exists) and applicable Executive branch policies and procedures, including, for information technology services, OMB Memorandum M-97-07 dated February 26, 1997.

Governmentwide agency contracts (GWACs) are multiple award task order contracts that provide for agencies (requesting agencies) needing information technology services to obtain them from another federal agency (servicing agency) that has entered into a contract (a) prior to August 7, 1996, under a delegation of procurement authority issued by the General Services Administration (GSA) under authority granted to it by the Brooks Act, 40 U.S.C. 759, or (b) after being designated as an executive agent for such by the Office of Management and Budget (or otherwise covered by such designation) pursuant to section 5112(e) of the Clinger-Cohen Act, 40 U.S.C. 1412(e). GWACs are subject to applicable Executive branch policies and procedures. However, they are not subject to the requirements and limitations of the Economy Act.

III. PRINCIPLES

Judicious management of multiagency contracts and GWACs requires adherence to the following principles.

A. Structuring Multiagency Contracts and GWACs

1. We agree to assess the potential magnitude of interagency orders to ensure that we have or will have adequate resources to properly administer the combined resultant workload. We further agree to consider, if necessary, placing limits on the size of individual orders, as well as initial limits on the amount of interagency usage, subject to periodic adjustment based on our demonstrated ability to adequately manage the contract in light of the volume of orders received.

2. We agree to provide electronic access to sufficient information to minimize the burden of using these contracts. We have placed or will consider placing this information on our Websites along with a link to the Acquisition Reform Network (ARNet).

3. We agree that the functions we perform will be limited to those that are inherently governmental. If fees are established to recover the costs of performing these functions, they shall be at the level necessary to cover actual costs for managing and administering the multiagency contract or GWAC. We agree that fees should be established so that the projected total revenue generated by the use of these contracts do not exceed projected actual costs. We further agree that fees should be adjusted so that total revenues do not exceed actual costs.

4. We commit to use, to the maximum extent practicable, small businesses (including small disadvantaged and women-owned businesses) at the prime or subcontract levels.

5. We agree to define ordering processes that are easy to understand and that emphasize streamlined procedures and electronic processes. We further agree to explain our approach for ensuring that all contractors are given a fair opportunity to be considered for individual task orders.

B. Accepting Tasks

1. We agree to remind the requesting agency of its obligation to determine the economy and efficiency of using those contracts to meet its needs. We further agree to remind the requesting agency that it must follow the requirements set forth in OMB Circular A-76 when applicable.

2. We agree to remind the requesting agency of its obligation to perform quality reviews of work statements to ensure that tasks are within the scope of the multiagency contract or GWAC, and that they reflect specific requirements.

3. We agree to remind the requesting agencies of their obligation to ensure that tasks satisfy their internal requirements, such as architectural standards for information technology. We will further remind requesting agencies that their use of multiagency contracts or GWACs does not relieve them of their responsibility to comply with applicable laws, regulations, and policies governing federal procurement.

4. We agree to encourage the requesting agency to use performance-based work statements to the maximum extent practicable. We further agree, for services that would be in the highest demand, to develop performance-based service contracting (PBSC) templates that could be used by the requesting agency to develop PBSC task orders.

5. We agree that multiagency contracts or GWACs should not be used for the sole purpose of obligating expiring funds at the end of a fiscal year. The requesting agency should have a bonafide need in the fiscal year to which funds are being obligated and follow all other appropriation law requirements.

C. Processing Orders

1. We agree to ensure that contractors are given a fair opportunity to be considered and that the exceptions to fair opportunity recognized in FAR 16.505 are used appropriately.

2. We agree to incorporate a best value approach and use past performance in determining contractors for individual tasks.

3. We will strive to minimize contractor costs associated with preparing proposals for orders. Where appropriate, we will consider limiting the size of written proposals, or encouraging the use of oral proposals. We further agree that proposal detail should be tailored to the minimum level necessary for adequate evaluation and selection for award.

D. Administering Orders

We agree to record information regarding contractor performance on orders and make it available to source selection officials to facilitate maximum practical consideration of past performance in awarding subsequent tasks.

E. Recompeting or Establishing New Multiagency Contracts

We agree to recompete or establish our own multiagency contract only after we determine that such a vehicle is in the best interest of the government and the most cost effective means of satisfying our requirements. In making this decision, we will consider (1) the economies and efficiencies to be gained by establishing our own multiagency contract, in light of the existence and feasibility of having our needs met through another agency, or multiagency contracts and (2) if the requirements are generally within our mission or competency to award.

IV. PROGRAM MANAGERS COUNCIL

We agree to the establishment of a Program Managers Council that would meet periodically to discuss policy and management issues of common concern involving GWACs and multiagency contracts. OFPP will chair the Council. The Council will, among its tasks, develop performance measures and best practices or alternative procedures to implement these principles, as appropriate.

V. JUDICIAL REVIEW

This Compact is intended only to improve the internal management of the Federal programs involved and does not create any right or benefit, substantive or procedural, enforceable at law or equity by a party against the United States, its agencies or instrumentalities, its officers or employees, or any other person.

PARTIES TO THE COMPACT

We, on behalf of our programs, hereby express our commitment to the principles contained in this Compact.

Mary L. Sloper
Program Manager DEIS II

Leamon Lee
Program Manager for NITAAC

Richard A. Lieber
Prinncipal DOT/TASC Acquisition Services ITOP

Charles Self
Program Manager FEDSIM

Last Updated: February 18, 1998

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